US retail sales might see an above consensus gain – Nomura

FXStreet (Barcelona) - Research Analysts at Nomura, expect the US retail sales data to see a 1.3%mom print, above consensus expectations at 0.9%.

Key Quotes

“In the US economy, after the 0.7% contraction in GDP in Q1, a lengthening list of key data – from housing activity to manufacturing ISM to non-farm payrolls – point to a strong recovery in Q2. For example, our Q2 GDP tracking estimate rose 0.5 percentage points last week, to 2.6%.”

“The missing ingredient has been the US consumer, but here too conditions seem ripe for a rebound and there are some positive signs, including vehicle sales growing at their highest pace since 2005, faster consumer credit growth and nascent signs of stronger wages.”

“This Thursday, we expect US retail sales growth to rebound from a flat reading in April to a stronger-than-expected 1.3% m-o-m in May (consensus: 0.9%).”

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